FIFO but our invoices are entered at the end of a period. How to treat with item entries?

Business Central/NAV User Forum
1

Hi Dug,

First post. Technical details of my on Prem install:

Version: US Business Central 19.1 (Platform 19.0.31889.32155 + Application 19.1.31886.32186)

We have a unique situation.

The commodity my client sells is controlled by the government and as a result, everything is done in the government’s time. This means invoices are received at the end of a given period (Jan sales are sold from Feb’s invoice).

Due to this, my item ledger entries are unapplied, until the subsequent purchase invoice is entered, then all open entries will attempt to apply to the first open purchase invoice.

I understand that BC will look for the first unapplied item ledger entry to try to apply outstanding sales amounts. I also understand that this will have to be affected via the application worksheet.

My manager disagrees however, citing the fact that aside from the Admin, no one else can affect Item Ledger entries and believes there must be another way aside from the application worksheet to apply these entries.

To summarise:

Sales 1-30 Jan - Stock is negative at the end of Jan
Purchase 1st Feb - Stock is now positive/zero as the system applies open item ledger entries

So Dug, is there another way to have BC assign Item Ledger Entries aside from the Application Worksheet?

Please let me know if I can provide more detail or make something clearer. I am open to all suggestions.

2

If you use purchase orders instead of purchase invoices you can post the “Qty. to receive” separately as soon as they arrive in the warehouse with ‘Receive’. This will prevent stock going negative, and item application will be in the correct order. When the invoice arrives in the next month, you go back to the purchase order, enter “Qty. to invoice” in the lines and post that with ‘Invoice’ to finish the workflow.